As a business owner, the cheapest price for anything can sound pretty appealing, including insurance. For many, it means getting a common business requirement taken care of without breaking the bank. Why pay more than you have to right? It all sounds good when looking at it this way. The problem is in this situation, you are getting what you pay for. Less. This is seen in many ways. The most important being a lack of coverage.
So, what are these policies missing?
It may not be what they are missing as much as what they are including. The most dangerous of which are coverage exclusions. As talked about in our post Exclusions: The Dark Side of Insurance, exclusions are provisions in an insurance policy that negate coverage. This is a major problem in the insurance industry that not enough people are aware of. Granted some exclusions are very common and will be seen in almost every policy. But there are many that shouldn’t be there, especially depending on your trade.
Why should I not focus on getting the cheapest price insurance?
After getting some quotes from a few companies, it’s decision time. As you review the quotes, it’s an easy decision, right? Just choose the lowest cost insurance right? Wrong. When making important life decisions (insurance for your business being one of them) it is always better to go with the quality option. That option in this instance is the insurance quote with the best coverage for the best price. Coverage should always come before price in insurance, or you will regret it in the future when it comes time for a major claim.
So, What next?
It’s time to find the best coverage for the best price. So how do you go about doing that? Our recommendation would be to go to an insurance broker with years of experience in the business. Our personal favorite is Summit Risk Management & Insurance. They represent hundreds of insurance carriers and are able to shop out the insurance quotes for you. This way you can rest assured knowing that you are properly covered for your work.